HMRC Investigation - update.

[ChimpMaster]

Isn't it the case that if they prove that SA is an employee for that year, then she is effectively within IR35 and hence would be due to pay additional PAYE taxes for that year also?

SA, how many years back was this period of contracting?

[cojak]

Are you with the PCG Sal? I would join asap...

It may appear too late but there are companies that can help you that are affiliated with the PCG who will give you a discount should you need their services.

and also it won't go down too well if the PCG discover that one of their affilate companies have left a member to swing in the breeze (allegedly...).

[AtW]

[cojak]

I know. It's a bummer...

Still, we'll get her through this....

[SallyAnne]

Isn't it the case that if they prove that SA is an employee for that year, then she is effectively within IR35 and hence would be due to pay additional PAYE taxes for that year also?

SA, how many years back was this period of contracting?

About 3 years ago.

And yes, that is my big fear here. They wont go hand in hand, but I would imagine this investigation could spiral straight onto another.

What they are effectively saying is that Manchester was my main place of work. Therefore, I shouldn't be able to claim any expenses in travelling to and from it. And the fact that I had a house back home is of no relevance - liek I kept it there just for kicks.

[SallyAnne]

Are you with the PCG Sal? I would join asap...

It may appear too late but there are companies that can help you that are affiliated with the PCG who will give you a discount should you need their services.

and also it won't go down too well if the PCG discover that one of their affilate companies have left a member to swing in the breeze (allegedly...).

I'm not with the PCG - I rang them over a year ago on pretty much the day I got the first letter through. And they basically said "too late sweetheart, you're on your own". Which was fair enough really.

[threaded]

Thought I'd keep you all informed....

Got a letter on Saturday...well it was more of a bill really than a letter.

They want £11k off me.

They say that during my year working in Manchester that I was a permie, therefore I cannot claim ANY expenses involved in being down there (accomodation, travel to and from work, travel to and from Sunderland to Manchester, nothing.)

They say that because I went through Reeds, who are an Employment Agency, that I was a disguised permie. And even though each contract I had with them was only for a short period of time, and each for a specific bit of work, that during those short intervals I was STILL really a permie in their eyes.

The IR just plain make stuff up. I wouldn't believe a word they say until you've had someone qualified to look at it.

[ASB]

About 3 years ago.

And yes, that is my big fear here. They wont go hand in hand, but I would imagine this investigation could spiral straight onto another.

What they are effectively saying is that Manchester was my main place of work. Therefore, I shouldn't be able to claim any expenses in travelling to and from it. And the fact that I had a house back home is of no relevance - liek I kept it there just for kicks.

SallyAnne,

Good luck in fighting it if you choose to do so. What you've got at the moment is the opening bid. Be prepared for a long fight. Also the interest clock is ticking You might want to talk to you accountants about something that used to be called a "certificate of tax deposit" or similar. There used to be a system in place which essentially meant you could hand over some cash and stop the clock, don't know if you still can.

Personally I think you should fight it, and you should win the IR position seems fundamentally flawed to me.

Problem can be cost, burden of proof is on you. When I was investigated the overall bill of the final figure plus advisors costs wasn't so different from the original assessment. And it took 4 years.

[SallyAnne]

SallyAnne,

Good luck in fighting it if you choose to do so. What you've got at the moment is the opening bid. Be prepared for a long fight. Also the interest clock is ticking You might want to talk to you accountants about something that used to be called a "certificate of tax deposit" or similar. There used to be a system in place which essentially meant you could hand over some cash and stop the clock, don't know if you still can.

Personally I think you should fight it, and you should win the IR position seems fundamentally flawed to me.

Problem can be cost, burden of proof is on you. When I was investigated the overall bill of the final figure plus advisors costs wasn't so different from the original assessment. And it took 4 years.

Thats very useful, thanks ASB.

Do you happen to know how much the interest is? I cant seem to find that figure off anynoe.

[AtW]

There used to be a system in place which essentially meant you could hand over some cash and stop the clock, don't know if you still can.

ASB - all that work in Russia seems to have taught you mafia terminology - "the clock" is what they say when you are in debt to them and the clock is ticking fast...